What: Chinese and U.S. shoppers help sales recover to pre-pandemic levels, consultancy Bain said.

Why is it important: The more likely scenario is for a full rebound in 2022.

Bain now sees a 30% probability that sales of high-end handbags, clothes and jewellery will return to or exceed their 2019 level of EUR 280 billion (USD 340 billion) this year, depending on how quickly vaccines are rolled out and tourism picks up. Its more likely scenario is for a full rebound in 2022, earlier than predicted.

Soaring sales in China and a stronger-than-expected U.S. rebound helped revenues bounce back sharply in the first quarter of 2021. Europe is lagging behind, hampered by a slower vaccination campaign and restrictions on tourism.

Bain also said that as people moved to countryside homes and worked remotely, sales in second-tier cities often went better than in big luxury capitals like New York or Milan - a factor brands will have to consider as they review their footprint.

And while handbags, leather goods and jewellery have been driving the recovery, spending on clothes, make up and perfumes is expected to pick up too as lockdowns ease and people resume going out.

Global luxury sales could return to pre-Covid levels this year

What: The franchise operator of Zara, Pull&Bear and Bershka will close all of its stores in Venezuela in the next few weeks.

Why is it important: Phonex World Trade, the Panamanian-based franchise operator, is re-evaluating the brands’ commercial presence in Venezuela to make it coherent with the new digital integration and transformation model announced by Inditex.

The move came as the Venezuelan government increases efforts to draw foreign investment back into the country by effectively ending years of socialist policies. Sieged by U.S. sanctions, the Nicolas Maduro administration has allowed the country to slide into a de facto dollarization since 2019, offering private companies some breathing room to operate.

Inditex entered the Venezuelan market in 1998, first managing the retail stores directly and then under a franchise model. The franchise navigated years of exchange and price controls that often led them to temporarily close stores due to a lack of merchandise.

Zara Stores To Close In Venezuela as Inditex Brands Exit

What: Kohl’s is making rapid headway towards recovery from 2020, but still reports numbers 5% lower than 2019 results.

Why it is important : Kohl’s continues to partner with new brands like Sephora and Calvin Klein in a broad-based merchandising revamp.

The retailer saw surprising Q1 sales results as it fights to recover from debt incurred during the global pandemic.

Kohl’s is strategically revamping its merchandising assortment through partnerships with major brands including Sephora, Calvin Klein, Eddie Bauer, And Tommy Hilfiger in hopes to transform its image and offering to customers.

Vaccines and the stimulus rollout likely gave Kohl’s a big push in Q1.

Kohl's posts 70% sales growth as it rides consumer momentum in Q1 

Kohl’s Halo Effect By Sephora And Others Will Pay Off

What: Senior officials told shareholders the company continued to innovate through the pandemic and is more agile.

Why is it important: At the start of 2020, digital accounted for 30% of sales, but the pandemic pushed digital to 54% by the fourth quarter last year.

Nordstrom strengthened its financial situation through “aggressive” expense savings and reduced base salaries of the executive team, said CEO Erik Nordstrom. The Seattle-based retailer ended its fourth quarter with USD 1.5 billion in liquidity, and fully paid back on its USD 800 million credit facility.

Through 2020, a big part of the program involved implementing integrations between the Nordstrom department stores, Rack off-price stores and Nordstrom Local doors, and offering more selection (from 300,000 items to potentially 1.5 million over the next three to five years), faster delivery and access to services.

Nordstrom has forecast annual revenue to reach USD 17 billion in the next three to five years, which compares to USD 10.38 billion in sales last year, and USD 15.13 billion in 2019.

Despite the Ordeal of the Pandemic, Nordstrom Cites Progress 

What:  All major department stores are entering into the food & beverage preparation and delivery market

Why it is important:  Rather than teaming up with specialized players, they build their solutions on their own, in order to create new streams of revenue.

Korean department stores are launching new activities and services to adapt to evolving customers’ demands and create new streams of revenue:

• Shinsegae sets up parking zones dedicated to pickup for delivery motorcycles, and offers food & beverage delivery,
• Lotte teams up with a logistical company to deliver purchases in neighbouring residential areas,
• Hyundai delivers prepared meals within 6 km.

With such initiatives, they also compete with food delivery platforms.

Department Stores in Korea Diversify 

What: After years of renovation work, a USD 750 million investment, the department store will finally open on 22 or 23 June.

Why is it important: According to LVMH's initial plans, tourists (especially Chinese tourists) were to account for half of the department store’s customers. In the current situation, La Samaritaine will have to entice local, French and European customers.

Run by LVMH’s DFS subsidiary, La Samaritaine is set to host 600 brands, including 40 exclusives (the LVMH group’s leading names, as well as those of Kering and Richemont), across an area of about 20,000 square metres.

Offices, private apartments and a crèche occupy part of the 70,000-square-metre complex, which is also home to Cheval Blanc Paris, a 72-room prestige hotel designed to attract an international clientele.

Before the pandemic, and comparing La Samaritaine with the results of the Galeries Lafayette’s Haussmann branch in Paris, French trade magazine LSA estimated that the revamped department store’s annual revenue could potentially exceed EUR 500 million.

LVMH Sets Date for Reopening of La Samaritaine Department Store

What: The department store says it’s seeing a “rebound” in business, which is expressed to stakeholders in a confidential report with preliminary fiscal third-quarter results.

Why is it important: The report details a Q3 rebound in sales that challenges speculation on the state of its business since emerging from bankruptcy last September.

The report provides guidance on comparable fiscal third-quarter sales, indicating a 43 to 44% gain in the third quarter compared to the 2020 period, and a 6 to 7% decline from the third quarter of 2019. The report also indicates that Neiman’s USD 900 million asset-backed loan, led by Bank of America and a consortium of commercial banks, is fully undrawn.

In the recent months, the company has been dogged by speculation of declining support by certain vendors curbing wholesale distribution, switching to concession business models, and being outperformed by competitors, putting Neiman’s under steady scrutiny. The third-quarter report challenges some of the months of speculation on the state of the business.

Citing some trends, the report said see now, buy now and newness are selling, and that the company is working with brands to support that with more frequent merchandise drops. While women’s is generally still soft, the department store have seen a shift in women’s contemporary, bridal and swim indicating signs of a recovery More shorts were sold in February this year than in June last year. The uptick in women’s contemporary reflects women starting to get out and socialize. Men’s sneakers and the designer business are strong, and much of the men’s business is coming from younger customers.

NMG’s CEO sees “a real desire for luxury and we are capturing more share of that demand.…We finished Q2 and entered Q3 with much less inventory than prior years. Full-price selling is significantly up. We moved markdowns later, by four to six weeks. Historically we would have May markdowns. We moved them to June and July. We are promoting full price and it is working.” On the downside, tourism continues to be really nonexistent.

Though Neiman’s is presenting a brighter picture, it must significantly sustain revenue gains to manage its remaining debt and maintain solid relationships with vendors. NMG’s total revenues for its last fiscal year were USD 3.65 billion, compared to USD 4.66 billion the year before.

Neiman Marcus Group Cites Sales Rebound 

What: Central announced for Q1 2021 a turnover -10% vs. LY, and a profit -48.4%

Why it is important: Situation in Thailand is not back to normal yet, and Central expects more consolidation and optimisation, after having united its department stores Central and Robinsons end of 2020 (link: https://www.iads.org/web/iads/2193-central-retail-to-unite-central-and-robinson-stores.php)

Thai group Central announced it reached 90% of its pre-covid level for Q1 2021, to USD 1.56 billion, which is seen as an encouraging move. However, profit is down -48.4% (USD 14.65 million). 2021 is for now considered more difficult than 2020 due to second and third lockdowns with store closures.

Central has maximized synergies with Robinson department store, now unified. They have also invested in Vietnam and new businesses. Further optimisation and restructuration should be expected this year.

Central Retail sales rebound to 90 per cent of pre-Covid levels 

What: The Dutch department store is expanding in Europe again.

Why it is important: After launching an e-commerce website in France last year, it is now opening an online store in Austria, marking the fourth foreign market for the omnichannel retailer.

De Bijenkorf’s online store launch in Austria was planned for the second half of 2020, but it took a while. Online stores were also opened in Belgium, Germany, and France. The launch of the online stores allows the retailer to be considered a true European player.

De Bijenkorf launches in Austria

What: The retailer's in-store traffic continues to grow, even as nonessential retailers come back to life.

Why is it important: Thanks to drive-up services and online orders fulfilled in store, physical retail accounted for over 95% of total sales this quarter alone.

The retailer revealed quarterly earnings, improving across all channels and logging more than USD 2 billion in profits during the last three months. “Our stores were the star of the show this quarter, with Q1 comp-store sales increasing by 18%, fuelled almost entirely by traffic,” Brian Cornell, chairman and CEO of Target.

And as consumers continued to visit Target’s stores, same-day services also continued to rise, up more than 90% during the quarter. Drive-up services had the biggest growth, up 123% during the quarter, year-over-year.

The company’s total revenues topped USD 24.1 billion for the three-month period ending 1 May, up from USD 19.6 billion a year earlier. First quarter comparable sales grew 22.9% during the quarter, with store comparable sales up 18%, year-over-year. Digital comparable sales also continued to grow, up 50% in the last three month, compared with a year earlier. That’s on top of the 141% growth during 2020’s first quarter.

By category, Cornell said there was comp sales growth in apparel, home and hardlines during the quarter. Apparel sales rose 60%, thanks to a mix of Target’s own brands and partnership with national brands.

Target Stores Remain Center of Its Omnichannel Universe 

What: Its second beauty outlet opened at Centre:mk shopping centre in Milton Keynes, north-west London, after a first opening in Lakeside, Essex, last September.

Why is it important: Through its new concept, Harrods aims to develop locally and will take into account the specificities of the local communities.

The new store, of nearly 2,700 square meters, offers a wide selection of high-end and luxury brands. According to the British brand, the rollout of this new concept aims to "bring Harrods' expertise in beauty, selection and luxury shopping experience to new consumers across the

UK. Each store is developed taking into account the local "beauty" community, to offer the latest products and experiences, often for the first time."

The "Playtable" space provides access to professional hairdressers, make-up demonstrations and product tests, while the "Skincare Station" area offers tailor-made consultations and treatments, not to mention the "Click and Collect" shop, available from 6 May.

From May 17, when restaurants will be able to reopen their interior spaces, H Beauty will also inaugurate the Champagne Bar, a 44-seat space with a "regressive menu of pastries and cocktails".

Harrods développe son enseigne H Beauty en Angleterre

What:  JC Penney underwent a reduction of 20% of stores and 40% of associates following its purchase by SPG and Brookfield Asset Management

Why it is important:  The company is aiming at a new leaner model, focusing on flexibility, outsourcing, to make the most of a renewed and refreshed fashion and home offer.

JC Penney went into bankruptcy in May 2020 and by then, operated 846 stores across the country with 84,000 associates, before being acquired by Simon Property Group and Brookfield Asset Management.

Since then, 174 stores have been closed (20%) and 34,000 associates were made redundant (40%). The remaining teams are either working from home or in leased spaces, as the HQ has been given up, and some functions such as IT support are being moved abroad.

The strategy is to be leaner and more flexible, in order to attract again the customer base via a new fashion and home brand offer.

JC Penney cuts jobs

What: 2021’s Q1 performance exceeded expectations on both the top and bottom lines.

Why is it important: Macy’s beats Wall Street estimates.

It expects sales between USD 21.73 billion and USD 22.23 billion, much higher than the USD 19.75 billion to USD 20.75 billion range it forecast earlier. Comparable sales are up 63.9% vs. 2020 and digital sales grow of 34% vs. 2020.

The department store chain is benefiting from easing restrictions, relief checks and a return to normalcy as people attend events and get back to offices after a year of staying at home.

People are shopping for fine jewellery and watches, fragrance and luxury items, and “special occasion categories” have seen an improvement as customers return to a pre-pandemic lifestyles.

Macy’s is placing its bets on big investments in new stores and technology to draw customers at a time when more people are shopping online.

Macy’s Raises Annual Forecast as People Return to Stores 

Macy's Inc Reports First Quarter 2021

What: Three charts to illustrate US uneven and unequal progress with shoppers returning to stores.

Why it is important: Despite remaining uncertainties, Moody’s is optimistic. In early May, the credit rating service revised its outlook for the US apparel and retail sector to positive versus stable.

The recovery this spring has been uneven, with spending surging after the US government sent stimulus checks to many Americans. But foot traffic remains significantly below levels seen in the same period in 2019.

![Retail’s uneven recovery 1

But the recovery will not be evenly felt across the industry. Retailers that performed well during the pandemic, like Ulta Beauty, are seeing better traffic than in 2019. And value-driven retailers like T.J. Maxx, which still offer shoppers a bargain experience that is not yet easily replicated online, are also seeing traffic surges after a year of store closures.

![Retail’s uneven recovery 2

Department stores are struggling, with Nordstrom, Macy’s and Bloomingdales among the retailers still down from pre-pandemic traffic levels, though improved from February.

Mall stalemates L Brands, Macy’s and Gap are seeing their stock prices recover after sharp declines in the early months of 2020 — a sign investors are optimistic about the future of the category.

![Retail’s uneven recovery 3

Retail’s Uneven Recovery in Three Charts 

What: Walmart is acquiring Zeekit, a female-founded startup based in Israel, to offer virtual try-on experiences.

Why it is important: It offers a solution to what has historically been a problem for many online brands, and for retailers last year when fitting rooms closed.

Having a virtual try-on feature gives customers a better idea of how a clothing item fits them and whether it matches their features.

The technology is not new as both e-commerce and name brands have debuted capabilities that allow consumers to virtually test items before purchase and provide a more convenient shopping experience.

As AR (augmented reality) capabilities grow, more players will begin to offer it as a way to reduce returns in the future.

Walmart to acquire virtual fitting room startup 

What: Adidas collaborates with Allbirds to learn more about sustainable alternatives

Why it is important: The key to lower carbon impact might lie in collaboration, not competition.

In 2016, Allbirds changed the manufacturing landscape with the introduction of its eco-friendly sneaker.

The company has teamed up with Adidas to release a new shoe as the latest entry in Adidas’ Futurecraft line of technologically advanced apparel. The Futurecraft.Footprint is a high-performance running shoe with a far smaller environmental impact.

Adidas and Allbirds evaluated the entire manufacturing process to reduce carbon emissions, starting with the materials. The shoe is made from 70% recycled polyester and 30% Tencel, a fiber material made from wood pulp. The shoe only comes in pure white because dyeing is also an energy intensive process.

The shoes will go on sale to the public in the fall.

Adidas and Allbirds Team Up to Make Sustainable Running Shoes

What: Standard & Poors Global Ratings raised its outlook for Macy's from negative to positive, signalling that the retailer could get an upgrade from its current B+ credit rating in the coming months.

Why is it important: Encouraging signs of an accelerating economic recovery are emerging, and operating conditions for apparel retailers are fast improving.

Over the course of 2020, Macy's was downgraded by S&P multiple times. About a year ago, when S&P lowered Macy's rating to B+, analysts with the agency said that more downgrades could come if sales and profits remain depressed from a prolonged pandemic or macroeconomic slump.

In 2021, along with vaccines, multiple rounds of federal stimulus have lifted consumer spending. S&P's noted that Macy's, as digital sales expanded, boosted its omnichannel capabilities during the year. The analysts also noted that Macy's picked up new customers as competitors J.C. Penney and Belk filed for bankruptcy, giving the retailer an opportunity to expand its market share, especially in digital shopping.

S&P turns positive on Macy's as apparel, economy gain steam 

What: Although still below 2019 sales levels, Nordstrom is well engaged in its digital transformation with an impressive 46% of sales achieved online, mainly thanks to its apps.

Why it is important:  Online is not anymore merely compensated lost offline sales, or coming as a complement to stores, but gaining market shares on its own.

While reporting Q1 2021 performances, Nordstrom announced that its total revenue YTD was still 13% below 2019 levels. However, e-commerce rose +23% last year, amounting to 46% of its total revenue, total revenue grew +44% vs. 2020 to USD 2.9 bn achieved through 100 Nordstrom stores, 248 Nordstrom Rack locations and the Trunk Club subscription service, and net loss was reduced to USD 116 million, from USD 520 million at the height of the pandemic.

Growth has been driven by the new apps (downloaded more than a million time), contributing to 75% of digital traffic and 2/3 of total digital sales.

Erik Nordstrom reiterated the fact that he was confident to achieve a full year performance of +25% with half of sales performed online, by anticipating a strong second half year.

Nordstrom Reduces Losses in Q1 

Nordstrom Reports First Quarter 2021 Earnings

What: The British retailer loss reflects a collapse in clothing sales due to the Covid-19 pandemic.

Why is it important: Marks & Spencer has traded well in the early weeks of the 2021-22 year, expecting profits to recover.

M&S made a pretax profit before one-off items of GBP 50.3 million (USD 71.2 million) in the year to April 3, down from the GBP 403.1 million made in 2019-20.

The 137-year old group said like-for-like clothing and homeware sales plunged 31.5%, damaged by multiple coronavirus lockdowns which shuttered stores. Clothing and homeware sales in stores crashed 56.2%, partly offset by online growth of 53.9%. In food, where space remained open during the crisis, like-for-like sales rose 1.3%.

The retailer is focusing on transforming the company’s culture, while closing stores, investing heavily in technology and e-commerce, and improving product and value. It forecast underlying pretax profit to recover to GBP 300-350 million in 2021-22.

M&S’s Annual Profit Slumps 88% As Covid Crushes Clothing Sales After Store Closures 

M&S full year results 2021 press release

What: As more and more retailers implement mobile checkout and contactless payment, a new ruling may have lasting implications for retail tech.

Why is it important: Adopting the right commission scheme is crucial to the omnichannel strategy.

Macy’s added mobile self-checkout to most of its retail stores in 2018, through an app enabling shoppers to scan barcodes on merchandise, and then go through a dedicated mobile checkout line. After three years of customers utilizing the retail tech, Macy’s employees have scored a victory in the case that Macy's failed to award commissions from purchases made through the app.

The grievance was filed by about 600 employees at six stores and the arbitrator ruled in favour of the union, which represents 11 000 Macy’s employees, to make the company end its practice of using its Scan and Pay mobile app to deny commissions to employees on in-store purchases.

As retailers continue to implement new omnichannel forms of shopping, the case should be kept in mind as tech plans are being drawn out.

Macy’s Ordered to Restore Commission for In-Store Mobile App Sales 

What: Marketing is oriented to better resonate with customers.

Why is it important: The department store favours local by paying tribute to the city.

As life in New York finally starts to normalize, Bergdorf Goodman’s pre-fall campaign embodies several of the city’s landmarks, communities and unique energy.

The campaign, called “It’s a New York Life,” offers content across Bergdorf’s digital platforms including bg.com, social media and paid social. There also will be activations and programs expanding the theme through the summer.

For Pre-fall, Bergdorf Goodman Tributes N.Y. Life 

What:  Japan reported a +5.2% growth in retail sales during the month of March

Why it is important: All department stores were forced to close on April 25 and are expected to remain shuttered until the end of May. It shows both the constant appetite from customers to get back to ‘normal retail’ and the fragility of economical situations all across the world.

Retail sales grew +5.2% in March due to the fact that customers were in high demand after shutdown and disruptions related to Covid-19 crisis. This allowed department stores to post an even higher demand, of +19.3%, in the beginning of the Spring season. However it is expected that this trend will not live long, given the fact that the Japanese government is reported to be currently examining maintaining the lockdown measures until the end of the month, in order to make the situation clear and safe for the Tokyo Olympics which will occur during the coming month of July.

Japanese retail sales rise

What: Hyundai Department Store’s consolidated net profit more than doubled on year to KRW 55.85 billion (USD 49.9 million) in the first quarter as new stores were opened and consumption recovered.

Why is it important: Operating profit surged 336.3% during the same period to KRW 65 billion.

The company’s net profit in the January-March period jumped 133.8% on year to KRW 55.85 billion won from KRW 23.89 billion. Its sales increased 52% during the same period to KRW 683.23 billion from KRW 450 billion during the same period a year ago.

Opening of new duty free stores in Dongdaemun in central Seoul and Incheon International Airport and increased sales of imported cosmetics have also helped, according to the spokesperson.

Hyundai Department Store's net profit more than doubles

What: Walmart plans to offer nationwide virtual healthcare services to be a market leader and gain a greater share of the healthcare business.

Why it is important: As other large players are taking stake in virtual healthcare, it will be important for Walmart to capture enrollment among member companies and to compete with other telehealth providers.

Walmart has acquired MeMD, a telehealth provider, so it can offer nationwide virtual healthcare. The retailer already has 20 clinic and 4,700 domestic stores that offer pharmacies.

Telehealth services are becoming a very competitive new feature in the industry with other large players like Amazon, CVS, and Walgreens.

Due to the pandemic, this new form of medical treatment is seeing accelerated adoption. As large players battle to become the leader across the space, consumers should benefit in the commoditisation of the services.

Walmart’s Expansion Into Telehealth Pits It Head-To-Head With Amazon Again